Gov't extends hoarding ban on urea solution, syringes by 2 months through October

The government will extend its ban on hoarding urea solution, urea, and medical syringes and needles through the end of October — a two-month extension. Supply conditions have improved following China's lifting of urea export controls, so the storage threshold for urea solution and urea will also be relaxed.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol announced the plan Thursday at Government Complex Seoul, where he chaired a joint meeting of the emergency economic headquarters, economic ministers and the consumer price special management TF. He outlined the government's operational plan for the hoarding prohibition notices covering urea solution, urea, syringes and needles.

The government will extend the hoarding ban on urea solution and urea — set to expire at the end of this month — through Oct. 31. The measure has been in effect since March 27, introduced to guard against potential supply disruptions of urea, the key raw material, stemming from the Middle East war.

Urea supply has recently stabilized. China lifted its export controls and allocated an export quota of about 2 million metric tons, while domestic companies are contracting to import 7,000 metric tons of Chinese urea — roughly a one-month supply. Combined public stockpiles and private inventories now cover three to four months of demand, in line with normal peacetime levels.

Taking the improved supply conditions into account, the government will also ease the storage threshold used to determine hoarding violations. Currently, importers, manufacturers and sellers of urea solution and urea may not store more than 150 percent of their average monthly sales volume from the previous year for seven or more days. Starting next month, that ceiling rises to 200 percent.

The hoarding ban on medical syringes and needles will likewise be extended by two months through Oct. 31. The government has prohibited hoarding by syringe and needle manufacturers and sellers since April 14, after the Middle East war disrupted supplies of raw materials including naphtha. Storing more than 200 percent of the prior year's average monthly sales volume for five or more days is classified as hoarding.

Supply of syringes and needles has also stabilized recently. Manufacturer inventories rose from about 48.18 million units at the end of May to about 71.99 million units at the end of July, and stood at about 69.54 million units in the second week of this month. On July 24, the government eased the storage threshold from 150 to 200 percent of the prior year's average monthly sales volume and lifted sales volume restrictions.

The government said it will monitor developments in the Middle East conflict as well as supply and retail conditions for urea solution, urea, syringes and needles to determine whether further extensions are needed.

Meanwhile, the government is also enforcing maximum price controls and a hoarding ban on petroleum products. Those measures remain in effect through Sept. 12.